July 23, 2009

NXIVM serves Metroland in $65 million suit

On July 9, Metroland was served the lawsuit that was
filed March 12 with the Supreme Court of the State of New
York in Niagara County, alleging, among other things, that
the paper defamed the controversial company NXIVM and its
founder, Keith Raniere [“We’ve Been Served—Oh Wait,” Newsfront,
April 2].

NXIVM is a Capital Region-based company that offers personal
and professional training seminars.

The article cited in the $65 million lawsuit, “The Stars Come
Out in Troy,” was written by news editor Chet Hardin and published
on March 13, 2008. The article reported that television actresses
Nicki Clyne, of Battlestar Galactica, and Allison Mack
of Smallville, reportedly adherents of NXIVM, were
considering starting a business and had met with Troy Mayor
Harry Tutunjian. In it, Hardin quoted at length longtime NXIVM
critic Rick Ross.

The crux of NXIVM’s lawsuit against Metroland stems
from one line: “Raniere, according to Ross, is not allowed,
by law, to be involved in a discount buyer’s club, due to
the collapse of CBI.” Consumers Buyline, Inc. is a company
that Raniere started and ran throughout the 1990s until it
was shuttered after multiple investigations.

NXIVM had been contacted for the article, and president Nancy
Salzman was quoted.

The suit maintains that Ross’ claim is false, and alleges
that Metroland either knew this claim to be false or
were “grossly negligent” in its reporting.

The suit also alleges that Metroland was involved in
a conspiracy with Ross, among others, to defame NXIVM. The
suit claims that NXIVM has suffered great financial loss from
this product disparagement.

“The
complaint is baseless,” said Metroland editor and publisher
Stephen Leon, “and 97 percent of it has nothing to do with
Metroland.” The passage from Hardin’s story that is
cited in the lawsuit, Leon said, “isn’t even remotely defamatory.”

Leon said that he is talking with legal counsel, and hopes
to have the case quickly dismissed. “I am frankly surprised
that they [NXIVM] have gone to the trouble to do this, because
it seems so pointless,” he said.

In the April story, Metroland reported that NXIVM had
filed the suit, and quoted NXIVM president Nancy Salzman as
saying, “We believe Metroland will engage in a meaningful
dialogue with us relating to these issues.” Leon said he is
not sure what Salzman meant by that statement, and that Metroland
was never contacted by a representative of NXIVM after that
story.